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IRS Form 8809 – Application for Extension of Time to File Information Returns – If you’re a business owner, payer, or filer responsible for submitting information returns to the IRS—such as Forms 1099, W-2, or 1095—you may occasionally need extra time to meet filing deadlines. IRS Form 8809, the Application for Extension of Time to File Information Returns, allows you to request a 30-day extension for filing these forms with the IRS. This can help avoid costly penalties, but it’s important to understand the rules, eligibility, and filing process.

As of December 2025, the latest revision of Form 8809 (Rev. December 2025) is available on the IRS website, with updates including support for filing through the Information Return Intake System (IRIS) for automatic extensions.

 

What Is IRS Form 8809?

Form 8809 is used to request an automatic 30-day extension (and in some cases, a non-automatic additional 30-day extension) for filing certain information returns with the IRS. It does not extend the deadline for furnishing copies to recipients (e.g., sending 1099s to contractors or W-2s to employees). For recipient extensions, a separate letter or Form 15397 may be required.

Forms Eligible for Extension via Form 8809

You can use Form 8809 for extensions on:

• Form W-2 (Wage and Tax Statement)
• Form W-2G (Certain Gambling Winnings)
• Form 1042-S (Foreign Person’s U.S. Source Income)
• Forms 1094-C and 1095 (ACA reporting)
• Forms 1097, 1098 series
• Forms 1099 series (including 1099-NEC)
• Forms 3921, 3922
• Forms 5498 series
• Form 8027 (Tip Income)

When to File Form 8809

File Form 8809 as soon as you know you need an extension, but no earlier than January 1 of the filing year and by the original due date of the information returns. Filing after the due date will result in denial.

Common due dates for information returns (for tax year 2025, filed in 2026):

• Most 1099-NEC and W-2: January 31, 2026 (shifts to February 2, 2026, if January 31 falls on a weekend)
• Other 1099 series (paper): February 28, 2026
• Other 1099 series (electronic): March 31, 2026
• ACA Forms 1095 (furnish to individuals): March 2, 2026 (adjusted for weekends)

Thus, Form 8809 for January 31 deadlines must be filed by January 31, 2026.

IRS Form 8809 Download and Printable

Download and Print: IRS Form 8809

How to File Form 8809

The IRS encourages electronic filing for faster processing and instant acknowledgment.

Electronic Filing Options

• FIRE System (Filing Information Returns Electronically): Complete a fill-in Form 8809 online for an automatic 30-day extension (available for most forms; not for additional extensions or certain forms like W-2).
• IRIS System (Information Return Intake System): Newly supported for automatic 30-day extensions as of the latest form revision.
• Third-party IRS-authorized e-file providers can also transmit Form 8809.

Electronic requests filed by the due date receive immediate confirmation.

Paper Filing

• Download the latest Form 8809 PDF from IRS.gov.
• Mail to: Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0036 (confirm on the form for accuracy).
• Required for:
  • Form W-2 extensions
  • Form 1099-NEC extensions
  • Additional (second) 30-day extensions
  • Non-automatic requests

Paper filings must be signed if requesting a non-automatic or additional extension.

Automatic vs. Non-Automatic Extensions

• Automatic 30-day extension: Granted for most forms without explanation (file timely via electronic or paper).
• Additional 30-day extension: Available for most forms (except W-2 and 1099-NEC) by filing a second Form 8809 before the first extension expires. Requires detailed justification on Line 7.
• Non-automatic for W-2 and 1099-NEC: Must provide specific reasons (e.g., catastrophic events, transmitter issues) and file on paper with a signature.

Only one extension is available for Form W-2.

Penalties for Late Filing

Failing to file information returns on time (without an approved extension) can trigger penalties starting at $60 per return (for 2025 filings), escalating to higher amounts based on how late the filing is and the size of the business. Intentional disregard can lead to even steeper fines. An approved Form 8809 extension reduces or eliminates these penalties for IRS filing (but not for recipient copies).

Key Tips for 2025-2026 Filings

• Plan ahead: Most extensions are automatic if filed timely.
• Separate requests: Use one Form 8809 per filer, but you can cover multiple form types.
• No recipient extension: Form 8809 only covers IRS filing deadlines.
• Check IRS.gov for updates: Rules can change, especially around electronic filing systems like IRIS and FIRE.

For the most current details, download Form 8809 and instructions directly from the official IRS page: About Form 8809.

By understanding and properly using Form 8809, you can avoid unnecessary penalties and ensure compliance with IRS information reporting requirements. If you’re unsure, consult a tax professional.

 

IRS Form 7206 – Self-Employed Health Insurance Deduction – Self-employed individuals often face high health insurance costs, but the IRS Form 7206 offers a valuable tax break through the self-employed health insurance deduction. This above-the-line deduction allows eligible taxpayers to subtract qualifying health insurance premiums directly from their adjusted gross income (AGI), potentially lowering taxable income and self-employment taxes indirectly. For the 2025 tax year, understanding Form 7206 is essential for freelancers, sole proprietors, partners, and S-corporation shareholders to maximize savings.

 

What Is IRS Form 7206?

Form 7206, Self-Employed Health Insurance Deduction, is an IRS form used to calculate and claim the deduction for health insurance premiums paid by self-employed individuals. The deducted amount is reported on Schedule 1 (Form 1040), line 17.

Introduced in recent years, Form 7206 replaced the previous Self-Employed Health Insurance Deduction Worksheet from Publication 535 (Business Expenses). It provides a standardized way to figure the deduction, especially in complex situations.

According to the official 2025 Instructions for Form 7206 on IRS.gov, you must use this form if certain conditions apply (detailed below). Otherwise, a simpler worksheet in the Form 1040 instructions may suffice.

Who Qualifies for the Self-Employed Health Insurance Deduction?

To claim the deduction using Form 7206, you must meet these key eligibility requirements:

• You are self-employed with a net profit reported on Schedule C, Schedule F, or Schedule K-1 (Form 1065).
• You are a partner in a partnership or a more-than-2% shareholder in an S-corporation who received wages, with health premiums paid or reimbursed by the S-corp (reported on Form W-2).
• You used an optional method to figure net earnings on Schedule SE.
• The insurance plan is established under your business (or considered established under it).

You cannot claim the deduction for any month if you (or your spouse) were eligible for subsidized employer-sponsored health coverage, including plans from your spouse’s, dependent’s, or child’s (under age 27) employer.

The deduction covers premiums for:

• Medical, dental, and vision insurance.
• Qualified long-term care insurance (subject to age-based limits).

It applies to coverage for yourself, your spouse, dependents, and children under age 27 at the end of 2025 (even if not dependents).

IRS Form 7206 Download and Printable

Download and Print: IRS Form 7206

How to Calculate the Deduction on Form 7206

The deduction is generally limited to your net profit from the business under which the insurance plan is established. Key steps from the 2025 instructions include:

1. Enter premiums paid for qualifying health insurance (line 1) and long-term care (line 2).
2. Calculate net profit or earned income attributable to the business.
3. Apply limitations: The total deduction cannot exceed your net earnings from self-employment.
4. If you have multiple businesses or plans, use a separate Form 7206 for each.

The final amount from line 14 of Form 7206 transfers to Schedule 1 (Form 1040).

Important notes:

• This deduction does not reduce net earnings for self-employment tax purposes (it only affects income tax).
• Excess premiums not deducted here may qualify as itemized medical expenses on Schedule A (but subtract the deducted amount first).

For Marketplace plans with premium tax credits (PTC), coordinate with Form 8962—only your net premiums qualify for this deduction.

When Must You Use Form 7206?

Most simple cases use the Form 1040 worksheet, but you must file Form 7206 if:

• You have more than one source of self-employment income.
• You claim qualified long-term care premiums.
• You have foreign earned income exclusion (Form 2555).
• You’re a more-than-2% S-corp shareholder with included wages.

Benefits and Limitations for 2025

• Benefit: Reduces AGI, which can lower your overall tax bracket and qualify you for other credits/deductions.
• Limitation: Cannot exceed business profit; no deduction if your business shows a loss.
• Retired public safety officers have special rules for distributions up to $3,000.

No major changes were noted for 2025 beyond standard updates (e.g., child age reference).

Tips for Claiming the Deduction

• Keep records of premiums paid and proof the plan is established under your business.
• Download the latest Form 7206 and instructions from IRS.gov/Form7206.
• Consult a tax professional for complex scenarios, like multiple businesses or PTC coordination.

By properly using Form 7206, self-employed taxpayers can significantly reduce their 2025 tax burden. Always refer to official IRS sources for the most accurate guidance.

Sources: IRS.gov (Form 7206, Instructions for 2025; Topic No. 502; Publication 974).

 

IRS Form 3921 – Exercise of an Incentive Stock Option Under Section 422(b) – Incentive Stock Options (ISOs) are a popular form of employee equity compensation, offering potential tax advantages over non-qualified stock options. When employees exercise these options, corporations must report the transaction using IRS Form 3921, titled “Exercise of an Incentive Stock Option Under Section 422(b).” This informational return ensures compliance with Internal Revenue Code Section 422 and helps employees track their basis for future tax reporting.

As of 2025, the latest revision of Form 3921 is from April 2025, with instructions updated accordingly. This guide explains what Form 3921 is, who files it, key deadlines, and its role in ISO tax treatment, based on official IRS sources.

 

What Are Incentive Stock Options (ISOs)?

Incentive Stock Options are statutory stock options granted under an employer stock option plan that meets specific requirements in IRC Section 422(b). Key features include:

• No regular income tax recognition at grant or exercise (unlike non-statutory options).
• Potential for long-term capital gains treatment if qualifying disposition rules are met: holding shares at least two years from grant date and one year from exercise date.
• However, the “bargain element” (fair market value at exercise minus exercise price) is an adjustment for Alternative Minimum Tax (AMT) purposes in the year of exercise, unless shares are sold in the same year.

For detailed tax rules, refer to IRS Topic No. 427 and Publication 525, Taxable and Nontaxable Income.

What Is IRS Form 3921?

Form 3921 is an information return filed by corporations to report the transfer of stock pursuant to an employee’s exercise of an ISO. It is required for each transfer (one form per exercise event, even if multiple in a year).

The form captures essential details:

• Box 1: Date the option was granted.
• Box 2: Date the option was exercised.
• Box 3: Exercise price per share.
• Box 4: Fair market value (FMV) per share on exercise date.
• Box 5: Number of shares transferred.
• Box 6: If applicable, name/address/TIN of the corporation whose stock was transferred (if different from the transferor).

This information helps employees calculate their cost basis and any AMT adjustments. Employees receive Copy B for their records; it is informational and not attached to their tax return unless reporting a sale or AMT.

Source: IRS About Form 3921 and Instructions for Forms 3921 and 3922 (Rev. April 2025).

Who Must File Form 3921?

Every corporation (public or private) that transfers stock to an individual upon exercise of an ISO must file Form 3921 for that calendar year. Exceptions:

• No filing required for nonresident aliens not receiving a Form W-2 during the relevant period.

Filing is mandatory regardless of the number of shares or if the exercise results in a same-day sale.

IRS Form 3921 Download and Printable

Download and Print: IRS Form 3921

Filing Requirements and Deadlines for 2025 Exercises

For ISO exercises occurring in calendar year 2025:

• Furnish Copy B to the employee: By January 31, 2026.
• File Copy A with the IRS:
  • Paper filing: March 2, 2026 (or next business day if weekend/holiday).
  • Electronic filing: March 31, 2026.

Electronic filing is required if filing 10 or more information returns (aggregated across types like 1099s, 3921, etc.) for the year. Use the IRS IRIS system or FIRE for e-filing.

Online fillable Copies B and C are available at IRS.gov/Form3921 to simplify furnishing to employees.

Penalties apply for late filing, incorrect information, or failure to file—up to hundreds per form, depending on delay.

See General Instructions for Certain Information Returns (2025) for full details.

Tax Implications for Employees Receiving Form 3921

• Regular Tax: No income reported at exercise. Basis in shares is the exercise price paid.
• AMT: The bargain element (FMV at exercise minus exercise price, multiplied by shares) is included as AMT income on Form 6251. Use Form 3921 Boxes 3 and 4 to calculate.
• Upon Sale:
  • Qualifying disposition: Long-term capital gain on full appreciation.
  • Disqualifying disposition: Ordinary income on bargain element, capital gain/loss on remainder.

Keep Form 3921 for records when reporting sales on Schedule D or adjusting for AMT credits.

Common Mistakes to Avoid

• Confusing ISOs with non-qualified options (which trigger W-2 income at exercise).
• Missing deadlines, leading to penalties.
• Incorrect FMV determination (must be reasonable and consistent).

Consult IRS Publication 525 for examples and further guidance.

Conclusion

Form 3921 plays a critical role in ensuring accurate reporting of ISO exercises, benefiting both corporations for compliance and employees for tax planning. With favorable tax treatment possible for ISOs, understanding this form helps maximize equity compensation benefits. Always refer to the latest IRS resources at IRS.gov for updates, as rules can change.

For personalized advice, consult a tax professional. Sources: IRS.gov (Form 3921, Instructions Rev. April 2025, Publication 525, Topic 427).

 

IRS Form 5405 – Repayment of the First-Time Homebuyer Credit – If you claimed the First-Time Homebuyer Credit for a home purchased in 2008, you may still have repayment obligations on your 2025 tax return. IRS Form 5405, titled Repayment of the First-Time Homebuyer Credit, helps taxpayers notify the IRS of changes in home use and calculate any required repayments. As of 2025, this primarily affects 2008 purchases, since repayment requirements for later years have expired.

Understanding Form 5405 is essential for avoiding penalties and accurately reporting taxes. This guide covers who needs to file, repayment rules, exceptions, and filing tips based on the latest IRS guidelines.

 

What Is IRS Form 5405?

Form 5405 notifies the IRS if a home purchased with the First-Time Homebuyer Credit was sold, disposed of, or no longer used as your main home. It also calculates the repayment amount due with your tax return.

The form applies almost exclusively to homes bought in 2008, when the credit (up to $7,500) functioned as an interest-free loan repaid over 15 years. For purchases after 2008, the credit was generally a true grant with no repayment required (except in specific early disposition cases, which have now passed).

Key source: IRS About Form 5405 and Instructions for Form 5405 (Rev. November 2024).

Who Must File Form 5405 in 2025?

You must file Form 5405 with your 2025 tax return if:

• You purchased the home in 2008.
• The home was disposed of (sold, foreclosed, etc.) or ceased to be your main home in 2025.
• Or other triggering events occurred, such as certain transfers or deaths.

If you still own and use the 2008 home as your principal residence throughout 2025, you do not need to attach Form 5405. Instead, report the annual installment directly on Schedule 2 (Form 1040), line 10.

Note: 2025 marks the final year of the 15-year repayment period for most 2008 claims (starting from 2010 repayments).

Source: IRS Topic No. 611 and Form 5405 Instructions.

Repayment Rules for the 2008 First-Time Homebuyer Credit

The 2008 credit requires repayment of the full amount over 15 years in equal installments (typically $500 annually for a $7,500 credit, or 6.67% of the original credit).

• Repayments began on the 2010 tax return.
• The final installment is due with your 2025 return (for tax year 2025).
• If the home is sold or stops being your main home before full repayment, the remaining balance accelerates and becomes due immediately (with some exceptions).

For post-2008 purchases: No ongoing repayment in 2025, as the 3-year holding periods have long expired.

When Is Accelerated Repayment Required?

Accelerated repayment triggers if the home:

• Is sold or disposed of.
• Ceases to be your principal residence (e.g., converted to rental).

In such cases, repay the outstanding balance (original credit minus prior installments) on your 2025 return using Form 5405.

IRS Form 5405 Download and Printable

Download and Print: IRS Form 5405

Exceptions to Repayment or Acceleration

No repayment (or limited repayment) applies in cases like:

• Death of the taxpayer (no repayment required for the deceased; surviving spouse may continue).
• Divorce (responsibility transfers to one spouse).
• Qualified official extended duty for military, Foreign Service, or intelligence community members.
• Involuntary conversion (e.g., destruction or condemnation) — repayment limited to gain on disposition, or deferred if replaced within 2 years.
• Sale to unrelated person — repayment capped at gain realized.

How to Calculate and Report Repayment

1. For ongoing annual installments (home still principal residence): Add the amount (e.g., $500) to Schedule 2, line 10. No Form 5405 needed.
2. For disposition or acceleration: Complete Form 5405 Parts II and III to figure the amount.
   • Subtract prior repayments from original credit.
   • Adjust for basis if calculating gain limitation.

Download the latest Form 5405 (Rev. November 2024) and instructions from IRS.gov.

Note: The IRS First-Time Homebuyer Credit Account Look-up tool is no longer available as of 2025. Track your original credit and prior repayments using old tax returns.

Filing Tips for 2025

• Attach Form 5405 only if required (disposition or specific events).
• Joint filers: Each spouse may need separate forms if both claimed portions.
• Always file a return if repayment is due, even if below filing threshold.
• Consult a tax professional for complex situations like sales with gain/loss.

For the most current details, visit IRS.gov and search for “Form 5405” or “Topic No. 611.”

This repayment phase ends after 2025 for 2008 credits — ensure your final installment is reported accurately!

 

IRS Form 8869 – Qualified Subchapter S Subsidiary Election –  known as the Qualified Subchapter S Subsidiary Election, allows a parent S corporation to treat one or more wholly-owned subsidiaries as qualified subchapter S subsidiaries (QSubs). This election simplifies federal tax reporting by treating the subsidiary as a disregarded entity, effectively deeming it to liquidate into the parent for tax purposes.

As of December 2025, the latest version of Form 8869 is the December 2020 revision, per the official IRS website. This guide covers eligibility, benefits, filing requirements, and key considerations using current IRS guidelines.

 

What Is a Qualified Subchapter S Subsidiary (QSub)?

A QSub is a domestic corporation that meets specific criteria under Internal Revenue Code (IRC) Section 1361(b)(3). When a valid QSub election is made via Form 8869:

• The subsidiary is not treated as a separate corporation for federal income tax purposes.
• All assets, liabilities, income, deductions, and credits of the QSub flow through to the parent S corporation.
• This results in a deemed tax-free liquidation of the subsidiary into the parent (generally under IRC Sections 332 and 337, if requirements are met).

QSubs provide S corporations flexibility similar to LLCs, allowing multiple entities for legal or operational reasons while maintaining single-entity tax treatment.

Eligibility Requirements for QSub Election

To qualify for a QSub election:

• Parent Company: Must be a valid S corporation.
• Subsidiary:
  • Must be a domestic U.S. corporation.
  • 100% of its stock must be owned by the parent S corporation.
  • Must not be an “ineligible corporation,” such as:
    • Financial institutions using the reserve method for bad debts (IRC Section 585 or 593).
    • Insurance companies taxed under Subchapter L.
    • Domestic International Sales Corporations (DISCs) or former DISCs.
  • The subsidiary must otherwise be eligible to be an S corporation itself.

Multiple subsidiaries can be elected on separate Forms 8869, though one form can cover multiple if desired (each requires detailed information).

Benefits of Filing Form 8869

Making a QSub election offers several advantages:

• Simplified Tax Compliance: Only the parent S corporation files Form 1120-S; no separate return is needed for the QSub.
• Pass-Through Taxation: Maintains S corporation flow-through benefits without separate entity taxation.
• Asset Protection and Operations: Subsidiaries remain separate for non-tax purposes (e.g., liability isolation, contracts).
• No Immediate Tax on Election: The deemed liquidation is generally tax-free if conditions are met.
• Flexibility in Structuring: Useful for holding companies, acquisitions, or reorganizations (e.g., F reorganizations under Rev. Rul. 2008-18).

However, termination of QSub status (e.g., by selling shares) triggers a deemed new corporation formation, potentially creating taxable events.

IRS Form 8869 Download and Printable

Download and Print: IRS Form 8869

How to File IRS Form 8869

When to File

• Generally, file no earlier than 12 months before or no later than 2 months and 15 days after the desired effective date.
• For new subsidiaries, the election can be effective on the formation date.
• Retroactive elections are limited; prospective are common.

Where to File

• Mail to the IRS service center where the subsidiary filed (or would file) its most recent tax return.
• Exception: For newly formed subsidiaries with election effective upon formation, file where the parent filed its most recent return.

No electronic filing is available; paper filing is required.

Key Form Sections

• Part I: Parent S corporation details (name, EIN, address).
• Part II: Subsidiary details (name, EIN, address, effective date).
• Provide prior filing information if the subsidiary filed returns before.
• Check boxes for special situations (e.g., F reorganization).
• Signed by an authorized officer of the parent (e.g., president, treasurer).

Processing and Confirmation

• IRS typically responds within 60 days (acceptance or rejection).
• You may receive CP 279 (acceptance) or other notices.
• Proof of filing: Use certified mail or check for IRS stamped copy.

Common Mistakes and Late Election Relief

• Failing to meet timing rules renders the election invalid.
• Late relief may be available under certain revenue procedures (e.g., for inadvertent errors), but consult a tax professional.
• If ineligible at the effective date, the election fails even if timely filed.

Frequently Asked Questions About Form 8869

Is Form 8869 still current in 2025?
Yes, the December 2020 version remains the latest.

Does the QSub need its own EIN?
Yes, but write “Applied For” if pending.

What if the election is for multiple subsidiaries?
File separate forms or include details for each.

Can the election be revoked?
Generally no, without IRS consent; termination occurs automatically if eligibility ceases.

For the most accurate guidance, download Form 8869 and instructions directly from IRS.gov/Form8869. Always consult a qualified tax advisor, as individual circumstances vary.

This election can significantly streamline operations for S corporations with subsidiaries—ensure compliance to maximize benefits.

 

IRS Form 8958 – Allocation of Tax Amounts Between Certain Individuals in Community Property States – If you’re married or in a registered domestic partnership and live in a community property state, filing taxes separately requires special attention to how income, deductions, and credits are divided. IRS Form 8958, titled Allocation of Tax Amounts Between Certain Individuals in Community Property States, is the key tool for properly allocating these items when filing Married Filing Separately (MFS) or equivalent.

This guide explains what Form 8958 is, who needs it, how it works, and important considerations based on the latest IRS guidance as of 2025.

 

What Are Community Property States?

There are nine U.S. community property states where assets and income earned during marriage are generally considered jointly owned:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

In these states, community property laws treat most income earned by either spouse during the marriage as belonging equally to both (50/50 split). This applies even if only one spouse’s name appears on paychecks, investment accounts, or other income sources.

Separate property includes assets owned before marriage, inheritances, or gifts to one spouse.

Note: Registered domestic partners (RDPs) in California, Nevada, and Washington must also follow similar community property rules for federal taxes.

What Is IRS Form 8958?

Form 8958 is used to allocate tax items (such as wages, interest, dividends, deductions, credits, and withholding) between spouses or RDPs who file separate federal tax returns but are subject to community property laws.

The form helps reconcile discrepancies between:

• What employers/payers report to the IRS (often under one spouse’s Social Security Number), and
• What each spouse reports on their individual Form 1040 (or 1040-SR/1040-NR).

Without Form 8958, your reported income may not match IRS records, potentially triggering notices or audits.

Both spouses (or RDPs) must complete and attach their own Form 8958 to their separate tax returns.

Who Needs to File Form 8958?

You must use Form 8958 if:

• You are married or an RDP with community property rights.
• You reside in (or are domiciled in) one of the nine community property states.
• You file a separate federal tax return (Married Filing Separately).
• Community income needs to be split (most cases when filing separately).

Exceptions:

• If you file jointly, you do not need Form 8958.
• Special rules apply for certain income types (e.g., self-employment tax is generally allocated to the earning spouse).

For detailed rules, refer to IRS Publication 555 (Community Property), revised December 2024.

IRS Form 8958 Download and Printable

Download and Print: IRS Form 8958

How Does Form 8958 Work?

The form has sections for identifying different types of income and tax items:

1. Wages, Salaries, and Tips — Typically split 50/50 if community income.
2. Interest and Dividends — From community accounts, split equally.
3. Self-Employment Income — Often allocated to the spouse who earned it.
4. Other Income (e.g., rents, pensions, partnership distributions) — Depends on state law and whether it’s community or separate.
5. Deductions and Credits — Community expenses are generally split; separate ones stay with the owner.
6. Federal Income Tax Withheld — Usually split 50/50 for community wages.

You list totals for each category (combined for both spouses), then allocate amounts to “You” (the filer) and “Spouse/RDP.”

The allocated amounts are then reported on your individual Form 1040 lines.

Key Rule: Generally, community income is split 50/50, but some states treat income from separate property differently (e.g., as community in Idaho, Louisiana, Texas, Wisconsin).

Step-by-Step Guide to Completing Form 8958

1. Gather all income documents (W-2s, 1099s, etc.) for both spouses.
2. Determine community vs. separate income under your state’s laws (consult Pub. 555).
3. Fill in totals in the middle columns.
4. Allocate to each person in the left/right columns.
5. Transfer your allocated shares to your Form 1040.
6. Attach Form 8958 to your return.

The latest version is Form 8958 (Rev. November 2023), still current as of late 2025. Check IRS.gov for any updates.

Common Mistakes to Avoid

• Forgetting to attach Form 8958 — This can cause processing delays.
• Incorrectly classifying income as separate when it’s community.
• Not coordinating allocations with your spouse/RDP — Your forms must match to avoid IRS mismatches.
• Ignoring state-specific variations (e.g., income from separate property).

Benefits of Filing Separately vs. Jointly

Filing jointly often results in lower taxes, but separate filing may be advantageous if:

• One spouse has high medical expenses or miscellaneous deductions.
• You want to limit liability for the other’s tax debts.

However, in community property states, separate filing requires the extra step of Form 8958.

Where to Get Help

• Download Form 8958 and instructions from IRS.gov.
• Read Publication 555 for in-depth community property rules.
• Consult a tax professional for complex situations, such as mixed separate/community assets or RDPs.

Properly using Form 8958 ensures compliance with IRS rules and accurate reporting of your share of community income. For the most current information, always visit official IRS sources.

 

IRS Form 8872 – Political Organization Report of Contributions and Expenditures – is a key compliance document for tax-exempt political organizations under Section 527 of the Internal Revenue Code. These organizations—often political action committees (PACs), parties, or campaign committees—must file this form to disclose certain contributions and expenditures, promoting transparency in political financing.

As of 2025, filing requirements remain focused on electronic submission, with no major recent changes noted beyond mandatory e-filing established in prior years. This guide covers who must file, what to report, deadlines, and penalties, based on official IRS guidelines.

 

What Is IRS Form 8872?

Form 8872 is used by tax-exempt Section 527 political organizations to report:

• Contributions of $200 or more from any person in a calendar year (including name, address, occupation, and employer if an individual).
• Expenditures of $500 or more to any person in a calendar year (including name, address, amount, date, and purpose).

Organizations do not need to report independent expenditures in certain cases, and foreign addresses may not be entered in the electronic system.

The form ensures public disclosure of funding sources and spending for political activities, such as influencing elections or nominations.

Who Must File Form 8872?

Most tax-exempt Section 527 political organizations must file Form 8872 if they accept contributions or make expenditures for exempt functions during the year, unless an exception applies.

Exceptions include:

• Organizations not required to file Form 8871 (e.g., those already reporting to the FEC as political committees).
• Qualified state or local political organizations that report similar information under state law.
• Organizations with gross receipts under $25,000 (in some contexts tied to other filings).

Generally, organizations must first file Form 8871 (Notice of Section 527 Status) to claim tax-exempt status, and those required to file periodic reports use Form 8872.

IRS Form 8872 Download and Printable

Download and Print: IRS Form 8872

Filing Requirements and How to File

• Electronic Filing Mandatory: All Form 8872 reports must be filed electronically via the IRS website at IRS.gov/polorgs. Paper filings are not accepted for periods beginning after December 31, 2019.
• To file, use the username and password obtained after submitting Form 8871 and Form 8453-X.
• Organizations choose monthly or quarterly/semi-annual scheduling for the entire calendar year.

Form 8872 Deadlines for 2025 (Non-Election Year)

2025 is an odd-numbered, non-election year for federal purposes, so no pre- or post-election reports are required.

• Monthly Filers:
  • Reports due by the 20th day after the end of each month.
  • December report due January 31, 2026.
  • First report starts in the month contributions or expenditures begin.
• Quarterly/Semi-Annual Filers:
  • Mid-year report (Jan 1–Jun 30): Due July 31, 2025.
  • Year-end report (Jul 1–Dec 31): Due January 31, 2026.

In even-numbered election years (e.g., 2026), additional pre- and post-general election reports apply, and monthly filers skip October/November regular reports.

What to Report on Form 8872

• Contributions: Aggregate $200+ per donor per year – include amount, date, donor details.
• Expenditures: Aggregate $500+ per recipient per year – include amount, date, purpose, recipient details.
• Reports cover only the specific period (monthly or quarterly).

Amended reports can be filed if needed, and a final report is required upon termination.

Penalties for Non-Compliance

Failure to file timely or accurately can result in penalties equal to the higher of $25,000 or a percentage (typically 21% for recent years) of unreported amounts. Late filing may also affect tax-exempt status.

Related Forms

• Form 8871: Initial notice for Section 527 status.
• Form 990/990-EZ: Annual information return for organizations with $25,000+ gross receipts.
• Form 1120-POL: Income tax return if taxable income exists (e.g., investment income).

For the latest forms and instructions, visit the official IRS page: About Form 8872.

This reporting promotes accountability in political funding. Consult a tax professional or the IRS for organization-specific advice, as requirements can vary. Public disclosures are searchable on the IRS website for transparency.

 

IRS Form 14157 – Return Preparer Complaint – In the complex world of tax preparation, most professionals uphold high ethical standards. However, if you’ve encountered misconduct from a tax return preparer, the IRS provides a straightforward way to report it through Form 14157, also known as the Return Preparer Complaint. This form allows taxpayers and even tax professionals to address issues like fraud, unethical practices, or errors that impact your tax return or refund. Updated processes as of October 2025 ensure complaints are handled efficiently, helping protect consumers and maintain integrity in the tax system. Whether you’re dealing with a diverted refund or a preparer who failed to sign your return, understanding how to use IRS Form 14157 can empower you to take action.

This guide covers everything you need to know about IRS Form 14157, including when to use it, step-by-step filing instructions, and what to expect afterward. We’ll draw from official IRS resources to ensure accuracy and reliability.

 

What Is IRS Form 14157?

IRS Form 14157 is an official document used to report complaints against paid tax return preparers or tax preparation businesses. It targets violations of ethical standards outlined in Treasury Department Circular 230, which governs tax professionals. Taxpayers can file if their return or refund was affected by misconduct, such as unauthorized changes or false claims. Even tax professionals can use this form to self-report issues like compromised Preparer Tax Identification Numbers (PTINs) or data breaches.

The form, revised in June 2018, includes sections for preparer details, complaint specifics, and taxpayer information. It’s not for identity theft (use Form 14039) or general tax law violations (use Form 3949-A). Instead, it focuses on preparer-specific problems, ensuring the IRS can investigate and potentially impose penalties or revoke credentials.

Key updates in related forms, like Form 14157-A (revised April 2025), reflect ongoing IRS efforts to streamline reporting for fraud or misconduct affidavits.

When Should You File IRS Form 14157?

File a return preparer complaint if you’ve experienced issues that fall into these categories:

• Impacted Tax Return or Refund: This includes unauthorized filing, alterations to your return, incorrect filing status to inflate refunds, false exemptions or dependents, manipulated income, false expenses/deductions/credits, or misdirected refunds.
• Improper Practices Without Direct Impact: Report failures like not entering a PTIN, using another person’s PTIN, refusing to provide a copy of your return, not signing returns, withholding records, using non-commercial software improperly, falsely claiming credentials, or self-reported issues by preparers.
• Other Scenarios: Employment tax failures (e.g., not filing Forms 940, 941, etc.), e-file violations like filing with pay stubs instead of W-2s, or theft of refunds.

Complaints for issues over three years old are typically not actionable unless under active audit or investigation. The IRS emphasizes that most preparers are honest, but reporting helps weed out bad actors. If you’ve received an IRS notice related to preparer misconduct, include it with your submission.

How to Fill Out IRS Form 14157: Step-by-Step

Filling out Form 14157 is straightforward, but accuracy is crucial. Here’s a breakdown based on the form’s sections:

1. Section A: Return Preparer Information
   • Check the preparer’s professional status (e.g., Attorney, Enrolled Agent, CPA, Payroll Service Provider, or Other/Unknown).
   • Provide the preparer’s name, address, phone, email, website, EFIN, PTIN, and EIN if known.
2. Section B: Complaint Information
   • List affected tax periods (e.g., calendar year 2024 for a return filed in 2025).
   • Indicate if you paid a fee, the amount, and how (e.g., deducted from refund).
   • Check all applicable complaint types, such as theft of refund, e-file issues, preparer misconduct, PTIN problems, false items, employment taxes, or other.
   • Describe facts in detail and attach supporting documents (e.g., tax returns, business cards, Form 8879).
3. Section C: Taxpayer’s Information
   • Confirm if you’re the affected taxpayer.
   • Enter your name, address, phone, email, and sign/date the form.
4. Section D: Your Information (If Not the Taxpayer)
   • Provide your details, relationship to the preparer (e.g., client, another preparer), and contact info.

If your account needs changes due to unauthorized filing or alterations, also complete Form 14157-A (Tax Return Preparer Fraud or Misconduct Affidavit).

Required Supporting Documents for Your Complaint

To strengthen your return preparer complaint, include:

• Copies of your tax return and related documents.
• IRS notices or letters.
• Proof from the preparer (e.g., advertisements, contracts, refund agreements).
• For employment taxes, a Contract for Service Agreement.
• Additional sheets for detailed explanations.

Do not send originals or payments. If filing Form 14157-A, include a copy of the unauthorized return, your correct version (if available), and identity verification like a driver’s license.

IRS Form 14157 Download and Printable

Download and Print: IRS Form 14157

How to Submit IRS Form 14157

Submission options are flexible:

• Online: Use the IRS’s secure online submission process for Form 14157.
• Fax: Send to 855-889-7957.
• Mail: Address to Internal Revenue Service, Attn: Return Preparer Office, 401 W. Peachtree Street NW, Mail Stop 421-D, Atlanta, GA 30308.

If responding to an IRS notice, use the address provided in it. For Form 14157-A, follow its specific instructions.

What Happens After You File a Return Preparer Complaint?

Once submitted, the IRS reviews your complaint for potential violations of internal revenue laws. They may investigate the preparer, which could lead to penalties, suspension, or revocation of their ability to practice. You won’t receive updates on the investigation due to confidentiality, but your report contributes to broader enforcement. If your taxes were affected, the IRS might adjust your account based on Form 14157-A.

The process helps combat terrorism, enforce tax laws, and share info with relevant agencies if needed, all under 26 U.S.C. § 7801 and § 7803.

Common Mistakes to Avoid When Filing IRS Form 14157

• Using the wrong form (e.g., for identity theft).
• Omitting details or documents, weakening your case.
• Reporting fee disputes (handle via local courts) or state/local tax issues (IRS lacks jurisdiction).
• Filing outdated complaints without ongoing audits.

Always gather evidence first and consult the IRS instructions.

FAQs About IRS Form 14157

What if my complaint is about a free tax preparer?

Form 14157 is for paid preparers. For volunteers (e.g., VITA programs), contact the program directly.

How long does it take to process?

The IRS doesn’t specify timelines, but investigations vary based on complexity.

Can I file anonymously?

While contact info is optional, providing it allows the IRS to seek clarification if needed.

Is there a deadline for filing?

Generally within three years, but exceptions apply for audits.

For the most current details, visit the IRS website or download Form 14157 directly. If you’re searching for “how to file a complaint against a tax preparer,” this guide provides the essential steps to get started confidently.

 

IRS Form 8233 – Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual – IRS Form 8233 allows nonresident alien individuals to claim exemption from withholding on compensation for personal services performed in the United States, primarily through income tax treaty benefits. As of December 2025, the latest instructions are revised December 2025, reflecting current IRS guidelines for avoiding 30% withholding on eligible income.

Nonresident aliens earning income from independent or dependent personal services in the U.S. often face automatic 30% federal tax withholding under IRC Section 1441. However, many U.S. tax treaties reduce or eliminate this withholding for qualifying individuals, such as professors, researchers, students, or independent contractors.

 

What Is IRS Form 8233?

Form 8233, titled “Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual,” is an IRS document that nonresident aliens use to assert tax treaty benefits. It certifies eligibility for reduced or zero withholding on:

• Independent personal services (e.g., fees for consulting, professional services, or self-employment).
• Certain dependent personal services (e.g., wages as an employee, including compensatory scholarships).

The form does not apply to non-personal services income (use Form W-8BEN instead) or to public entertainers/athletes in most cases, as treaties often limit or exclude their exemptions.

Who Must File Form 8233?

Nonresident alien individuals qualify if:

• They are not U.S. citizens or resident aliens (no green card or substantial presence test met).
• They perform personal services in the U.S.
• Their country of residence has a tax treaty with the U.S. providing exemption or reduced rates (see IRS Publication 901 for treaty tables).
• Common beneficiaries include foreign professors/teachers, researchers, students/trainees on F/J/M/Q visas, and independent contractors.

Note: Form 8233 is required annually and for each withholding agent (e.g., separate forms for different employers or income types).

IRS Form 8233 Download and Printable

Download and Print: IRS Form 8233

How to Complete and Submit Form 8233

Step-by-Step Process

1. Download the Form — Obtain the current Form 8233 (Rev. September 2018) and Instructions (Rev. December 2025) from IRS.gov/Form8233.
2. Fill Out the Form — Provide personal details, U.S. TIN (SSN or ITIN—apply via Form W-7 if needed), visa information, treaty country, and specific article citation.
   • Attach required statements for students/teachers/researchers (see Appendices in Publication 519).
3. Submit to Withholding Agent — Give the completed form to your employer or payer.
4. Withholding Agent Review — The agent verifies eligibility, signs Part IV, and forwards a copy to the IRS within 5 days (mail or fax to specified address/number).
5. Validity — Effective for the calendar year specified; renew annually.

If the IRS rejects the form, withholding resumes at 30% (or graduated rates for dependent services).

Key Differences: Independent vs. Dependent Services

• Independent: Typically 30% flat withholding; treaties often fully exempt if no U.S. fixed base.
• Dependent: Graduated withholding like U.S. employees; treaties may exempt wages for teachers/researchers/students.

For non-treaty-exempt portions, use Form W-4 (with Notice 1392 adjustments for nonresidents).

Common Examples of Tax Treaty Benefits

• A foreign professor from a treaty country (e.g., Germany) may exempt teaching income for up to 2–3 years.
• International students/trainees often exempt compensation during training periods.
• Independent consultants avoid withholding if the treaty’s independent services article applies.

Check specific treaty limits (e.g., time/dollar thresholds) in Publication 901.

Important Notes and Deadlines

• Submit before payments begin to avoid initial withholding (overwithheld amounts can be refunded via tax return).
• No personal exemption amount claims allowed on personal services compensation.
• Penalties apply for false claims.
• For entertainers/athletes exceeding treaty thresholds, consider a Central Withholding Agreement.

For the most accurate application, consult IRS Publication 519 (U.S. Tax Guide for Aliens) and your specific tax treaty.

By properly using Form 8233, eligible nonresident aliens can significantly reduce U.S. tax burdens on personal services income in 2025 and beyond. Always refer to official IRS sources for personalized advice.

 

IRS Form 8990 – Limitation on Business Interest Expense Under Section 163(j) – In today’s complex tax landscape, understanding deductions for business interest expenses is crucial for businesses aiming to optimize their tax strategies. IRS Form 8990 plays a pivotal role in this process, helping taxpayers calculate allowable deductions under Internal Revenue Code (IRC) Section 163(j). This provision, introduced by the Tax Cuts and Jobs Act (TCJA) of 2017 and modified by subsequent legislation, limits the amount of business interest expense that can be deducted in a given tax year. Whether you’re a small business owner, a partnership, or a corporation, complying with these rules can significantly impact your bottom line. In this guide, we’ll break down everything you need to know about Form 8990, including who must file, how to calculate limitations, recent 2025 updates, and more—drawing from official IRS sources for accuracy.

 

What is Section 163(j) and Why Does It Matter?

Section 163(j) imposes a limitation on the deduction for business interest expenses to prevent excessive leveraging and ensure fair taxation. Under this rule, the deductible amount of business interest expense in a taxable year generally cannot exceed the sum of:

• The taxpayer’s business interest income,
• 30% of the taxpayer’s adjusted taxable income (ATI), and
• Floor plan financing interest expense.

Any excess interest expense is disallowed for the current year but can typically be carried forward to future years. This limitation applies broadly to trades or businesses, with exceptions for small businesses and certain electing industries.

The rule matters because it affects cash flow and tax planning. For instance, in years with low income, businesses might face higher disallowed amounts, leading to carryforwards that provide future benefits. Originally capped at 30% of ATI (with add-backs for depreciation and similar items phased out temporarily), recent legislative changes have restored and clarified these computations for 2025 and beyond.

Who Must File IRS Form 8990?

Not every taxpayer needs to file Form 8990. The form is required if you meet any of the following criteria:

• You have business interest expense for the tax year.
• You have disallowed business interest expense carried forward from prior years.
• You’re a partner with excess business interest expense from a partnership.

Pass-through entities like partnerships and S corporations must file if they’re allocating excess taxable income or excess business interest income to owners. Regulated investment companies (RICs) paying section 163(j) interest dividends also file. U.S. shareholders of controlled foreign corporations (CFCs) may need to attach Form 8990 to Form 5471 if the CFC is subject to the limitation.

Exceptions: Who Doesn’t Have to File?

• Small Business Taxpayers: If your average annual gross receipts for the prior three tax years do not exceed the inflation-adjusted threshold ($31 million for tax years beginning in 2025), you’re exempt—unless you’re a tax shelter or have excess business interest expense from a partnership.
• Excepted Trades or Businesses: Activities like employee services, electing real property trades, electing farming businesses, or certain regulated utilities are not subject to the limitation.
• Taxpayers with only excepted businesses or no business interest expense are generally exempt.

If your business mixes excepted and non-excepted activities, you’ll allocate interest expenses based on asset basis to determine applicability.

Key Definitions for Form 8990

To navigate Form 8990 effectively, familiarize yourself with these terms:

• Business Interest Expense: Interest paid or accrued on indebtedness allocable to a trade or business (excluding investment or personal interest).
• Adjusted Taxable Income (ATI): Tentative taxable income (computed without the section 163(j) limitation) plus additions like business interest expense, net operating loss (NOL) deductions, and—for tax years beginning after 2024—depreciation, amortization, and depletion. Subtractions include business interest income and certain gains.
• Floor Plan Financing Interest: Interest on debt used to finance inventory of motor vehicles, boats, or farm machinery (expanded to include trailers and campers for recreational use after 2024).
• Excess Business Interest Expense: For partnerships, the amount of disallowed interest allocated to partners, which they carry forward.
• Tentative Taxable Income: Taxable income disregarding the section 163(j) limitation and certain other deductions.

These definitions ensure accurate calculations and compliance.

How to Calculate the Business Interest Expense Limitation

Calculating the limitation involves several steps:

1. Determine Total Business Interest Expense: Include current year expense plus any carryforwards (Line 1 + Line 2 on Form 8990).
2. Compute ATI: Start with tentative taxable income, add back items like NOLs and business interest expense, and—for 2025—include depreciation, amortization, and depletion.
3. Apply the Formula: Limitation = Business interest income + 30% of ATI + Floor plan financing interest.
4. Deductible Amount: The lesser of total business interest expense or the limitation.
5. Carryforward: Any excess is carried forward (or allocated in partnerships).

For pass-through entities, the limitation is figured at the entity level, with excesses passed to owners. Use Worksheets A and B in the instructions for allocations.

IRS Form 8990 Download and Printable

Download and Print: IRS Form 8990

Example Calculation Table

Step	Description	Example Amount
1	Current Business Interest Expense	$100,000
2	Prior Year Carryforward	$20,000
3	Total Expense (1+2)	$120,000
4	Business Interest Income	$10,000
5	ATI	$300,000
6	30% of ATI	$90,000
7	Floor Plan Interest	$5,000
8	Limitation (4+6+7)	$105,000
9	Deductible Amount (min of 3 or 8)	$105,000
10	Carryforward (3-9)	$15,000

This simplified example assumes no other adjustments; actual calculations may vary.

Step-by-Step Instructions for Filling Out Form 8990

Form 8990 consists of Part I (Computation), Part II (Partnership Items), Part III (S Corp Items), and Schedules A/B for summaries.

• Part I, Section I: Enter current expense, carryforwards, and floor plan interest.
• Section II: Calculate ATI by adding/subtracting specified items from tentative taxable income.
• Section III: Enter business interest income.
• Section IV: Compute 30% ATI, total limitation, deductible amount, and carryforward.
• Schedules A and B: Summarize pass-through items from partnerships/S corps before completing Part I.

Attach election statements for excepted businesses, including your name, TIN, and business description. For CFCs, use Worksheet C for safe-harbor elections.

Recent Updates to Form 8990 and Section 163(j) for 2025

As of 2025, several updates enhance clarity and ease deductions:

• Gross Receipts Threshold: Increased to $31 million for the small business exemption.
• ATI Add-Backs: For tax years beginning after 2024, depreciation, amortization, and depletion are added back to ATI, potentially increasing the limitation.
• One Big Beautiful Bill Act (OBBBA) Changes: Effective for years beginning after December 31, 2025, OBBBA clarifies that business interest expense includes capitalized interest (except under certain sections), restores favorable rules, but adds anti-abuse provisions prohibiting elective interest capitalization to bypass limitations.
• Form Revisions: The January 2025 instructions reflect these changes, with the form itself revised in December 2025.

Stay updated via IRS Fact Sheet 2025-09 for the latest inflation adjustments.

Common FAQs About IRS Form 8990

• What if my gross receipts fall below the threshold? The limitation doesn’t apply, and prior carryforwards become fully deductible.
• How do elections work? Elections for excepted businesses are irrevocable and require attached statements; they mandate alternative depreciation systems (ADS).
• What about foreign corporations? CFCs are treated like domestic C corps; group elections or safe-harbors can simplify compliance.
• Can I elect out of higher limits? Yes, for certain CARES Act provisions, but most are historical now.

For more, refer to the IRS Q&A on business interest limitations.

Final Thoughts on Managing Business Interest Deductions

Mastering IRS Form 8990 and Section 163(j) can help businesses maximize deductions while avoiding penalties. With 2025 updates providing more favorable ATI calculations and clarified rules, now is the time to review your interest expenses. However, tax laws are intricate—consult a qualified tax professional or use IRS resources for personalized advice. By staying compliant, you can focus on growing your business rather than navigating tax pitfalls. For the latest forms and instructions, visit the official IRS website.